The Bangko Sentral ng Pilipinas (BSP) said it is exploring ways to foster digital financial innovation by enabling banks, electronic money issuers (EMIs) and financial service providers (FSPs) to transact with customers in a digital marketplace.
The central bank said the digital financial marketplace model is anchored on the Open Finance Framework, which allows the sharing of financial data of consenting customers to create innovative financial solutions that cater to their needs.
“The BSP is crafting rules that will allow covered banks and EMIs to establish a digital marketplace where they can partner with FSPs to develop and offer a wide array of financial products and services to consumers under a one-stop-shop platform. This arrangement is expected to promote a more competitive environment that will ultimately benefit financial consumers,” BSP governor Benjamin E. Diokno said in a statement.
According to the BSO, the digital marketplace will recognize the right of clients to choose product offerings. Similarly, the bank or EMI will be jointly responsible for providing consumers with necessary information to help them make informed choices, it added.
The financial products or services to be offered include retail loan products, such as home mortgage loans, credit cards, motor vehicle loans, salary loans, and consumer credit for other purposes; other retail financial products, such as cash cards, debit cards and other related products; retail insurance products, collective investment schemes or pooled investment funds, such as mutual funds and unit investment trust funds; and other financial products or services as may be authorized by the BSP.
These financial products or services, the BSP said, should be duly approved or registered by the appropriate regulatory authority, if applicable.
The proposed guidelines on the adoption of a digital financial marketplace model are expected to set the criteria for engagement in marketplace operations, as well as supervisory rules on the governance and management of attendant risks.
“The BSP is coordinating with relevant stakeholders and financial regulators to ensure that the proposed digital financial marketplace model is consistent with existing laws, rules and regulations. We remain steadfast in our commitment to foster innovative regulations, while maintaining the stability of the financial system and upholding consumer rights,” Diokno said.